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Offshore Company Land NewsLetters?


Is it illegal to use an offshore company? 
Staff writer:
Sept. 20, 2012

No. It is not illegal to use an offshore company. You can incorporate and use an offshore company to conduct various business activities. So the real question is why do some people make it seem like it is illegal and who is giving offshore companies a bad name?

Think about all the times you have heard about an offshore company. The most common instances are In The News when the company has done something illegal OR when it is revealed that some rich individual has been using one or two to avoid taxes they would otherwise have to pay. None of the stated situations are positive reinforcers when you think about an offshore company. In one case you feel like they went offshore thinking that they could get away with breaking the law and in the other you say to yourself, that rich -you know what - is paying a lower tax rate than I am and I am making far less than him!

The offshore companies themselves cannot to anything without the direction of the managers and owners. They don't have a mind of their own and go off and do illegal things when nobody is looking. They are corporate instruments which are sometimes misused, as we hear about In The News from time to time. And the rest of us doing the right thing with our offshore companies are viewed negatively.

So that's where most of the negativity comes from. It also does not help when high tax nations threaten to prosecute their own citizens if they don't come clean about personal income received from offshore sources by the latest deadline. Regardless of the fact that your personal tax status has nothing to do with the corporate tax status of the offshore company. As we have written before - you should comply with the income reporting requirements that apply to you. Click here to see our Newsletter? in relation to this.     

If you have any questions about the above, send us an email.